Public Provident Fund(PPF)

Public Provident Fund .Today here ,on this page we will provide all the necessary information about the Public Provident Fund.All the necessary details regarding the Public Provident Fund ,that an employee must need to know are provided below on this page.

Some Necessary Information Regarding Public Provident Fund

This scheme is named as Public Provident fund which is usually known as PPf. This scheme is meant for investment cum tax savings for the employees.With the help of this scheme the candidates which are covered under this scheme can made investments in which the exemption in the tax is given to the candidate.
Today ,on this page we will provide enough information to make the employees aware of the scheme in which they are contributing.We are talking about PPF. All the necessary information that a candidate need to know about the PPF is made available on this page as it’s origin period and working procedure.So the candidates can scroll down and get all knowledge about the PPF.

What Is Public Provident Fund

It is a scheme for the employees introduced by the National Savings Institute that under falls the Ministry of Finance.Under this scheme the ,candidates can do savings and some tax exemption is given by the government under the saving of this scheme.This scheme was introduced by the Ministry of Finance in the year 1968.the main motive of the Ministry by presenting this scheme was to mobilize the small savings along with providing some tax exemptions foe the savings combined reasonable returns .
Now a common question arises , which employees are taken under this scheme ?
So,all the employees who have a residence of India are eligible to open their accounts under this scheme. And also all the candidates who have been working in India but are of another country and have a residence of India can open their account under this scheme.
Every individual of India is eligible to open their account an account in Public Provident Fund.

How And Where Is This Account Is Opened

Every single people who have a residence of India has a right to open this account for the purpose of savings.There are many mediums to open an account .This account can be opened through many financial institutions such as bank i.e ICICI bank,State Bank Of India,post offices. NRIs are not eligible to open this type account.
And the best thing is that you can open an account online also.

Return And Savings on the Investment In PPF:-

This scheme is usually based on same process.The candidate who is opening an account in PPF scheme will have to make an yearly investment of Rs 500/- and an individual can make a investment of maximum Rs 1.50 lac/- in any given financial period.The excess amount deposited in the account will neither gain any interest and nor will be given the rebate on the tax.
the interest rate given on the account of PPF is decided by the Government Of India.The rate pattern is compound interest and the rate of interest which is effective from 1st,April,2016 is 8.1 %.The interest on the account will be paid in the month of March every year.
The standard duration of the scheme is of 15 years which can be expanded on the request of the candidate in the blocks of 1 year and 5 year.
Once the maturity period is over for the account,the customer can do the following three steps with the account.

1)He can withdraw the money completely.
2)He can extend the time of the maturity without depositing money for future
3)He can extend the time of money and continue depositing the money in future

The loan facility is also available in this account,the candidate can take a loan from the account during the 3rd financial year to 5th financial year at the rate of interest of 2% more than the prevailing rate of interest.
The money of the PPF has a lock in period of 15 years.And an premature withdrawal can be made after the 6th financial year of the commencement of fund.
The candidate who is opening an account under PPF has a choice to nominate any candidate as a nominee,which can be one or more than one person.The shares of the nominee can be defined by the account holder.It will be helpful for the candidate for future in case of death or something unexpected.

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